CryptoQuant: Hash Ribbons Signal the End of Miner Capitulation
On August 11, Bitcoin miners recorded their lowest daily revenue in 2024, highlighting significant profit losses. The Bitcoin (BTC) Hash Ribbons metric uses moving averages over 30 and 60 days to measure mining difficulty and financial challenges for miners. According to CryptoQuant data, this indicator has signaled a potential end to miner capitulation.
The crossing of the 30-day average above the 60-day average indicates that miners are transitioning back into the market with more efficient equipment. This often coincides with price lows for Bitcoin, offering investors an opportunity to enter at lower prices by timing their purchases carefully.
Increased Mining Difficulty Reaches New All-Time High
As of August 1st, Bitcoin's mining difficulty reached a new all-time high of 90.66 trillion but later decreased slightly to around 86.8 trillion—still significantly higher than historical levels. This increased difficulty reduced miner profitability dramatically; hash prices fell below $36 per Petahash per second (PH/s), recovering only marginally thereafter.
This decline in profits is pushing some miners towards diversifying into other high-performance computing services such as artificial intelligence (AI). For instance, TeraWulf announced plans in July to diversify its operations by building new facilities focused on AI and HPC services at Lake Mariner.
U.S.-Listed Bitcoin Miners Enjoy Financing Advantage Over Competitors
A report from Cryptopolitan highlights how U.S.-listed Bitcoin miners have a substantial financing advantage due to easier access to capital markets compared to private or foreign competitors. Companies like Marathon Digital and Core Scientific leverage various strategies to raise hundreds of millions for expansion efforts.
This financial flexibility allows these companies not only greater operational scale but also positions them as natural consolidators within an industry driven by economies of scale and capital-intensive operations.
Diversification Strategies Among Leading Miners
Marathon Digital recently raised $300 million through convertible bonds aimed at purchasing additional Bitcoins—a strategy reminiscent of MicroStrategy’s approach using long-term debt instruments for treasury assets acquisition. Meanwhile, Core Scientific secured $400 million over five years primarily targeting investments in AI-focused data centers while paying down existing debts.
Gryphon Acquires Ultra Low-Cost Power Mining Operations
An article from wallstreet:online reports that Gryphon Digital Mining Inc., listed on NASDAQ under the GRYP ticker symbol, acquired up-to-2.9 MW bitcoin mining operations powered by ultra-low-cost electricity averaging ~$0.01/kWh located in Louisiana equipped with gas power generators among other assets including containers housing about fifty-nine PH/s worth of machines—all funded via existing working capital expected to generate free cash flow immediately post-acquisition!
Sources:
- CryptoQuant: Hash Ribbons signalisieren Ende der Miner-Kapitulation
- 7 Festnahmen bei Durchgreifen gegen illegales Bitcoin-Mining in Malaysia
- In den USA notierte Bitcoin Miner haben einen Finanzierungsvorteil gegenüber privaten und ausländischen Konkurrenten | Kryptopolitisch
- RBI-Bericht hebt Entwicklung von Indiens digitaler Zentralbankwährung hervor
- Gryphon Acquires Ultra Low-Cost Power Mining Operations at ~$0.01/kWh Seite 1 - 20.08.2024
- Bit Digital erweitert AI- und HPC-Fußabdruck, unterzeichnet 700-Millionen-Dollar-Vertrag mit Boosteroid
